Resources Science ›› 2021, Vol. 43 ›› Issue (1): 23-39.doi: 10.18402/resci.2021.01.03

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Effect of environmental strategy on environmental performance and economic performance: Based on the regulating effect of enterprise growth and market competition

WANG Liping1,2(), YAO Ziting2, LI Chuang3()   

  1. 1. Finance and Economics College, Jimei University, Xiamen 361021, China
    2. School of Finance and Economics, Henan Polytechnic University, Jiaozuo 454000, China
    3. School of Business Administration, Jimei University, Xiamen 361021, China
  • Received:2020-03-05 Revised:2020-08-01 Online:2021-01-25 Published:2021-03-25
  • Contact: LI Chuang

Abstract:

Whether environmental strategy can create a win-win situation of improved environmental performance and economic performance is directly related to the enthusiasm of enterprises to develop and implement environmental strategies. Therefore, this study empirically tested the relationship between environmental strategy, environmental performance, and economic performance by using the panel data of China’s four main polluting industries in 2014-2018. The results show that: (1) Environmental strategy as a whole can significantly achieve a win-win situation of increased environmental performance and economic performance; (2) Further grouping study shows that enterprises have different environmental strategies because of their different growth stages and market competition conditions, which in turn have varied effects on the two performances. The environmental strategies of enterprises with rapid growth have a significant positive impact on environmental performance but do not bring significant economic benefits, while the environmental strategies of low growth enterprises have no significant impact on environmental performance but can bring significant economic benefits; the more fierce the market competition, the more obvious the role of environmental strategy in promoting environmental performance and economic performance, while the effect of environmental strategy in weak competition environment is relatively limited; (3) From the perspective of the content of environmental strategies, only when enterprises attach importance to long-term environmental management, green technology innovation, and green culture construction, rather than being satisfied with meeting the emission standards or avoiding environmental violations in the short term, can they achieve improved environmental performance and economic performance; (4) After the implementation of the new Environmental Protection Law, the promotional effect of enterprise environmental strategy on environmental performance is more prominent, but the impact on economic performance is falling.

Key words: environmental strategy, environmental performance, economic performance, enterprise growth, market competition